Sensex drops 151 points on heavy selloff in auto stocks

Indian equities extended their fall for yet another session Monday, with the BSE Sensex falling over 150 points and the NSE Nifty slipping below the 10,900 mark on heavy selloff in banking, realty, auto and pharma stocks.

Investors were cautious ahead of industrial production and inflation data due this week, amid as global growth worries, including the US-China tariff tiff, and lacklustre corporate earnings, traders said.

The 30-share barometer after shuttling between 36,588.41 and 36,300.48 points, finally ended at 36,395.03, down 151.45 points, or 0.41 per cent. The gauge had lost nearly 429 points in the previous two sessions.

The 50-scrip NSE Nifty finished 49.80 points, or 0.50 per cent, down at 10,888.80, after touching a low of 10,857.10 and a high of 10,930.90 during the session.

Auto segment stocks continued to trade in the red with M&M, emerging as the biggest loser in the Sensex pack by plunging nearly 5 per cent after it reported 11.44 per cent decline in standalone profit after tax (PAT) at Rs 1,076.81 crore on Friday for the third quarter ended December 31, 2018.

Brokers said auto sector stocks were centre of nervous selling, triggered by dismal quarterly earnings posted by leading auto makers.

Meanwhile, domestic passenger vehicle (PV) sales declined for the third month in a row in January, dropping 1.87 per cent, as manufacturers continued to reduce inventory at dealers following a tepid festive season sales, according to SIAM.

Finance News & Insights

Contributors

Dr Rangan T S

Founder and Managing Director, RupaJan Management Consulting Private

Promila Panda

Corporate Head HR, BEUMER India Private Limited

Rajnish Magan

CFO, BEUMER India Private Limited

Vishnu Sultania

CFO, BHARAT CONNECT TECHNOLOGIES PRIVATE LIMITED

About Us

Programic Asia is the leading provider of business-to-business conferences and on-line information. Founded in 2014, the Company maintains highest standards of quality and service in research, technology and product development. We are the go to source for online and offline events, information, education, networking, and promotion for executives across an extensive range of industries and professions.